An examination of Loctite's decision to introduce Kemp Foods Corp Executive Summary, its brand-new instantaneous adhesive dispenser has heighted the truth that the dispenser would not be complementing the company's current line of product. The fact that Loctite is a leader in instant adhesives and runs in a market which has low price level of sensitivity indicates that offering a low priced adhesive under Loctite's name would just be minimizing the business's earnings in the long run. With hazards of sales cannibalization and sales of Loctite's high end dispenser's being threatened by the brand-new potential launch, Loctite does not have a legitimate argument for launching Kemp Foods Corp Executive Summary other than the fact that the prototype of the new creation has been established and is ready to be launched under the business's name.
A suggested marketing mix in case the company chooses to proceed with the launch suggests the rate to be below $250 with the product being targeted at a specific niche segment such as that of the 'motor vehicle repair work' so that the business does not end up losing the marketplace share of its high-end models to Kemp Foods Corp Executive Summary because of the product's low cost. Circulation through distributors is recommended based on the marketing mix instead of selecting the sales group considering that the cost of each sales call is $120 which would not be a financially possible move for a low cost product. A promotional project can not be eliminated from the marketing mix since the initial awareness needs to be produced in order to reach out to prospective customers in the targeted segment.